Forex Today: Markets turn attention from Middle East to Nonfarm Payrolls
Here is what you need to know on Friday, August 7:
On Friday, August 7, investors shifted their focus away from Middle East tensions and towards the upcoming release of the US Nonfarm Payrolls report. The US Dollar remained relatively stable as market participants waited for the highly anticipated employment data. Statistics Canada also released labor market data for July. The US Dollar was the strongest against the Japanese Yen during the week.
The USD Index showed mixed results, closing higher before consolidating near 100.00. Analysts expect the Nonfarm Payrolls to increase by 80,000, following a disappointing 57,000 increase in June. Danske Bank and MUFG/BTMU forecast the unemployment rate to remain steady at 4.2%, while average hourly earnings are expected to rise by 0.3% month-over-month.
The Federal Reserve Bank of St. Louis President Alberto Musalem expressed hawkish sentiments during his speech, indicating a potential for tighter monetary policy. Meanwhile, President Donald Trump expressed optimism about the end of the war in the Middle East, and Iran reportedly was nearing a final agreement on commercial shipping through the Strait of Hormuz.
Gold prices experienced a slight decline on Thursday but gained momentum in the European morning, rising above $4,300. Analysts suggested that the upcoming Nonfarm Payrolls report would be the next significant test for the market, as a weaker-than-expected result could weaken inflation expectations and support the Dollar.
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- US stocks close lower as investors eye Middle East talks, earnings freemalaysiatoday.com
